The following data was taken from the records of the Dallylaang Manufacturing Company for the month of June: WIP, beginning - 7,500 units, 4 complete, P10,400; WIP, end - 4,500 units, 2/5 complete; Placed in process - 75,000 units; Transferred out - 74,000 units. During the month, the company has used P198,708.75 worth of materials in production and spent P233,775 for conversion costs. Using the FIFO method, compute for the adjustment for lost units if the normal loss occurred at the end of processing.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following data was taken from the
records of the Dallylaang Manufacturing
Company for the month of June: WIP,
beginning - 7,500 units, % complete,
P10,400; WIP, end - 4,500 units, 2/5
complete; Placed in process - 75,000
units; Transferred out - 74,000 units.
During the month, the company has used
P198,708.75 worth of materials in
production and spent P233,775 for
conversion costs. Using the FIFO method,
compute for the adjustment for lost units
if the normal loss occurred at the end of
processing.
Transcribed Image Text:The following data was taken from the records of the Dallylaang Manufacturing Company for the month of June: WIP, beginning - 7,500 units, % complete, P10,400; WIP, end - 4,500 units, 2/5 complete; Placed in process - 75,000 units; Transferred out - 74,000 units. During the month, the company has used P198,708.75 worth of materials in production and spent P233,775 for conversion costs. Using the FIFO method, compute for the adjustment for lost units if the normal loss occurred at the end of processing.
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